(MENAFN- Muscat Daily) Oman's annual inflation rate as measured by the consumer price index (CPI) inched down to 0.8 per cent in December of 2014 as the cost of most food items and commodities either eased or stabilised.
In November last year inflation fell to 0.95 per cent from 1.02 per cent in October statistics released by National Centre for Statistics and Information (NCSI) showed.
In the food and non-alcoholic beverages segment which has a nearly 24 per cent weighting in Oman's CPI prices dropped 0.33 per cent in December on a month-on-month basis. The decline in food inflation was mainly due lower vegetable and fish and seafood costs which dropped 3.17 per cent and 2.81 per cent in December respectively.
Prices of bread cereals sugar and confectionery products also decreased marginally. On other hand milk oil and fats meat and non-alcoholic beverages inched up on a year-on-year basis.
Dr Fabio Scacciavillani chief economist with Oman Investment Fund said the strengthening US dollar and lower global commodity prices are likely to weigh down Oman's inflation in the foreseeable future.
He said 'Global commodity prices are either stablising or declining in dollar terms. In addition the strengthening of the US dollar against other currencies is helping to keep imported inflation very minimal or negative. Lower global energy prices will also keep imported manufactured goods costs stable or down.'
The price of tobacco products rose 2.83 per cent in December from a year ago while clothing and footwear fell by 1.03 per cent.
The housing water electricity gas and other fuels category which has the biggest 26.5 per cent weighting in the CPI posted a 0.38 per cent rise in prices in December.
The cost of furnishing household equipment and household maintenance jumped 5.8 per cent in December from a year earlier. Health education and communication were up 4.96 per cent 4.51 per cent and 4.82 per cent respectively.
Prices of domestic services like health furnishing household maintenance and education are up because there are no international substitutes in these categories Scacciavillani said.
Inflation in the transport category was 0.31 per cent while in restaurants and hotel it was 0.56 per cent.
'Overall there is no inflationary pressure in Oman and the economy is growing at a healthy pace. It is a comfortable situation which has been prevailing for the past few years' Scacciavillani added.
The Ministry of Finance in its recent budget statement said the outlook for 2015 indicates a continued decline in the rate of inflation due to the decline in global basic commodity prices.
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